
Disclaimer
BY CLICKING ON “I AGREE”, I DECLARE I AM A WHOLESALE CLIENT AS DEFINED IN THE CORPORATIONS ACT 2001.
What is a Wholesale Client?
A person or entity is a “wholesale client” if they satisfy the requirements of section 761G of the Corporations Act.
This commonly includes a person or entity:
who holds an Australian Financial Services License
who has or controls at least $10 million (and may include funds held by an associate or under a trust that the person manages)
that is a body regulated by APRA other than a trustee of:
(i) a superannuation fund;
(ii) an approved deposit fund;
(iii) a pooled superannuation trust; or
(iv) a public sector superannuation scheme.
within the meaning of the Superannuation Industry (Supervision) Act 1993that is a body registered under the Financial Corporations Act 1974.
that is a trustee of:
(i) a superannuation fund; or
(ii) an approved deposit fund; or
(iii) a pooled superannuation trust; or
(iv) a public sector superannuation scheme
within the meaning of the Superannuation Industry (Supervision) Act 1993 and the fund, trust or scheme has net assets of at least $10 million.that is a listed entity or a related body corporate of a listed entity
that is an exempt public authority
that is a body corporate, or an unincorporated body, that:
(i) carries on a business of investment in financial products, interests in land or other investments; and
(ii) for those purposes, invests funds received (directly or indirectly) following an offer or invitation to the public, within the meaning of section 82 of the Corporations Act 2001, the terms of which provided for the funds subscribed to be invested for those purposes.that is a foreign entity which, if established or incorporated in Australia, would be covered by one of the preceding paragraphs.
Fixed income
Accrued interest
Accrued interest represents the interest that has accumulated on a bond or other debt instrument since the last interest payment date but has not yet been paid to the bondholder. It’s essentially the portion of interest that the bondholder has earned up to a specific date.
Here's how it works:
1. Interest payment schedule
Most bonds pay interest periodically, such as semiannually or annually. Between these payment dates, interest accrues daily based on the bond’s coupon rate.
2. Calculation for transactions
When a bond is sold between interest payment dates, the buyer owes the seller the accrued interest, as the seller owned the bond for part of the period and is entitled to that portion of interest earned. The bond price includes this accrued interest.
3. Importance in yield calculations
Accrued interest is critical in determining a bond's yield because it affects the bond's total purchase price and, consequently, the return for the investor.
In short, accrued interest is a mechanism that ensures fair compensation for the interest earned between payment dates whenever a bond changes hands.